Investment Infrastructure

The Republic of Tatarstan provides an excellent investment infrastructure.

Priority industries:

• chemical and petrochemical industry;
• mechanical engineering and metalworking;
• information technologies and telecommunications;
• agro-industrial complex;
• construction;
• medical and pharmaceuticals industry;
• service industry and tourism;
• research and development.

However, we also provide investor-tailored services for other projects in many other industries that are being implemented in the Republic of Tatarstan.

The elements of investment infrastructure:

• special economic zones, technology parks, industrial parks, industrial sites;
• exemptions and preferences for investors;
• administrative and government support of the Investors.

Investment Sites

Investment infrastructure of Tatarstan consists of different-level sites — brownfield with available infrastructure and greenfield with opportunity to arrange infrastructure to the taste of the Investor. Along with the sites the Investor may purchase or lease a land plot.

Two main areas of investment site activity are: commercialization of scientific research results, and development of industrial manufacture. Number of sites grows constantly; their level changes. Today, many investors of industrial facilities choose Alabuga SEZ and Master KIP because of their extended infrastructure. Meanwhile, there are Investors who choose other sites because of other factors depending on the industry, geography, etc.

Exemptions and Concessions for Investors

The Republic of Tatarstan offers wide range of exemptions for investors in addition to exemptions and preferences established by the federal investment laws.

According to the Law “On Investment Activity in the Republic of Tatarstan” the entities involved in investment activity, who concluded an agreement for implementation of investment project with authorized authority of the Cabinet of the Republic of Tatarstan, are exempted from republican taxes in accordance with tax and fee laws of the Russian Federation. Tax exemption is granted to the entities involved in investment activity for payback period of investment project, however this period can not exceed 7 years from the beginning of investments.

In accordance with applicable legislation there exist tax exemptions for enterprises implementing priority investment projects — reduction of property tax rate to 0.1% and income tax rate to 13.5% paid to the budget of the Republic of Tatarstan.

The Law No. 68-LRT of the Republic of Tatarstan “On Investment Tax Credit in the Republic of Tatarstan” allows to improve efficiency of granted tax preferences. The Law provides for investment tax credit for the period of 7 years or less, and establishes fixed credit percent rate at the level of 1/2 discount rate of the Central Bank of the Russian Federation.

“One contact” approach is used at investment project support in the Republic of Tatarstan: members of investment project cooperate under the common procedure. The Investor applies to the Tatarstan Investment Development Agency, and receives all required information and support in authorities, which grant exemptions and preferences.

Administrative and Government Support of the Investors

• Federal Law No. 39-FL d/d February 25, 1999 “On Investment Activity Carried Out in the Russian Federation in the Form of Capital Investments”
• Federal Law No. 224-FL d/d July 13, 2015 “On Public and Private Partnership, Municipal and Private Partnership in the Russian Federation and Introduction of Changes to Certain Legislative Acts of the Russian Federation” comes into effect on January 1, 2016

• Law No. 1872 of the Republic of Tatarstan d/d November 25, 1998 “On Investment Activity in the Republic of Tatarstan”
• Law No. 2180-XII of the Republic of Tatarstan d/d July 19, 1994 “On Foreign Investments in the Republic of Tatarstan”
• Law No. 49-LRT of the Republic of Tatarstan d/d November 28, 2003 “On Company Property Tax”
• Law No. 24-LRT of the Republic of Tatarstan d/d November 29, 2002 “On Transport Tax”
• Law No. 53-LRT of the Republic of Tatarstan d/d August 2, 2008 “On Corporate Tax Assessment for Certain Categories of Taxpayers”
• Presidential Decree No. PD-477 of the Republic of Tatarstan d/d June 18, 2012 “On Investment Policy Statement of the Republic of Tatarstan”
• Presidential Decree No. PD-538 of the Republic of Tatarstan d/d July 5, 2012 “On Formation of Investment Committee of the Republic of Tatarstan”
• Resolution No. 284 made by the Cabinet of the Republic of Tatarstan on May 7, 1999 “On Approval of Procedure for Government Support of Enterprises and Companies Implementing Investment Projects in the Republic of Tatarstan”
• Resolution No. 377 by the Cabinet of the Republic of Tatarstan d/d July 24, 2006 “On Approval of Procedure and Conditions of Conclusion of Agreement for Implementation of Investment Project Between the Entity Involved in Investment Activity and the Ministry of Economy of the Republic of Tatarstan and Draft Agreements for Implementation of Investment Project”
• Resolution No. 115 made by the Cabinet of the Republic of Tatarstan on February 20, 2013 “On Approval of Provisional Regulations of Cooperation of the Entities Involved in Investment Activity to Enable Implementation of Investment Projects within the Territory of the Republic of Tatarstan According to ‘One Contact’ Approach”

At the present time the Central Bank has chosen Tatarstan to be a pilot region for introduction of Islamic banking; the Federal Law is going to be examined and approved in a few years.

Contact us, if you wish to take advantages of investment infrastructure of the Republic of Tatarstan.